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Passengers travelling between Nairobi and Mombasa are set to pay nearly double for rides on the Standard Gauge Railway (SGR) in a new fare regime to be effected in April.
Travellers on the economy class will cough up Sh1, 200 up from the current Sh700. Those on the First Class, currently parting with Sh3, 000, are also set to pay more when new fares will be announced as SGR marks its first anniversary in May.
SGR economy fares had initially been priced at Sh900 one-way between Mombasa and Nairobi before the government adjusted it downwards to a promotional Sh700 to stimulate consumer traffic. It has, however, emerged the subsidised SGR fares are inadequate to meet the train’s operational costs and its loan obligations to the China Exim Bank.
Speaking exclusively to K24TV, our sister station, Kenya Railways managing director Atanas Maina said the current pricing is not sustainable hence the need for a review. He said the operator is still consulting on fares for different classes, with base expected to be around Sh1, 200. With the anticipated fare hikes, the train service will rake in a double their current revenues.
The government hopes new fares will enable it to pay the China Exim Bank loan, which financed the first phase of SGR between Mombasa and Nairobi at a cost of $3.8 billion (Sh387 billion). As the operator reviews fares it also intends to improve consumer experience and boost amenities along the route.
“There are still a few things we need to tweak in terms of improving customer experience…opening up shops in the station and broadening the booking platform,” Atanas said. Up to 5, 000 passengers use the SGR express and inter-county trains daily reaching a near optimum occupancy rate of over 95 per cent.
Kenya Railways is also expected to boost its fortunes with the operation of its cargo services that commenced early last month. The service is expected to reduce cargo load on Kenyan roads.
The SGR freight service is expected to take up at least 40 per cent of cargo cleared at the port of Mombasa off the road. Kenya Railways also operates two express passenger trains — one departing Nairobi at 2.30 pm and the other in Mombasa at 3.30 pm.
Inter-county trains stops at seven stations — Mariakani, Miasenyi, Voi, Mtito Andei, Kibwezi, Emali and Athi River — along the 472km line. The train departing for Mombasa leaves Nairobi at 8am to arrive at 1pm. While the Nairobi-bound one starts the journey from Mombasa at 7.15 am for five hour journey.
Source: Mediamax
Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TradeMark Africa.